Standard Chartered Threatened by Weakening Foundations When Risk is High

Standard Chartered is painting its front door and tidying up the garden. This makes its house more attractive, but the real threat is its weakening foundations at a time when the risk of earthquakes is high.

The emerging markets bank has three problems in the eyes of investors: poor earnings, relatively weak capital and big potential bad debts. Peter Sands, chief executive of the U.K.-based lender, is tackling the first. But capital and credit risks remain the real threats.